News ID: 230491
Published: 0210 GMT August 28, 2018

Sepahan signs contract with German company to upgrade raw materials

Sepahan signs contract with German company to upgrade raw materials

Iran's Sepahan Oil Company (SOC) signed an oil sector partnership agreement with Germany's EDL to upgrade the quality of its raw materials including motor and industrial oils, announced the first deputy managing director of SOC.

Speaking to Sputnik, Masoud Ahmadzadeh further said that he discussed the purpose of the partnership agreement in the context of the US sanctions as well as the benefits that Iran would get from it.

"Unfortunately, I can't tell you the exact number of the contracts since it is classified information. The German EDL has strong ties with Iran, and it has been operating in the Middle East and Iran for about 20 years. The company is interested in continued cooperation with Iran. However, the German government, as well as the European Union, allowed these companies to work with Iran, and support some of the companies so that the American restrictions would not affect their performance."

According to Ahmadzadeh, SOC held talks on the issue of sanctions with these companies. Fortunately, he added, EDL did not consider the sanctions a problem, so the sides managed to sign a partnership agreement.

Ahmadzadeh mentioned the introduction of new technologies to upgrade the quality of production is among the areas of cooperation between the two companies.

"Our company specializes in oil refining as well as commercial oils and oil production. Our challenge now is to attain a new level in creating wax concentrates. Rubber, textile and wood-working industries use wax concentrates. We are going to go further and start manufacturing highly-refined wax for use in healthcare and food industries," he pointed out.

Ahmadzadeh said SOC plans to implement this project jointly with EDL, and this will have many financial benefits for Iran as the price of the wax concentrate is now between $550 and $600 while highly refined wax costs $1,100 per ton.

He said large companies such as Total which are leaving Iran are being replaced by small and medium-sized European companies.

"As the sanctions make large companies leave Iran, smaller European firms willing to cooperate with Iran take this opportunity to replace them and the process has already started."

He pointed out that Germany's EDL was one of the first companies to sign a contract with Iran.


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